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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

A dealer sends a television set to a customer on 'sale or return' terms and fixes 10 days for return. The customer does not tell the dealer he approves, but keeps the set for 15 days without giving notice of rejection. When does the property in the set pass to the customer?

Property passes to the customer when the fixed 10-day period expires. Where goods are on approval or sale or return and the buyer keeps them without giving notice of rejection, the property passes on expiry of the fixed time.

  1. AOn the expiry of the fixed 10 days, because he retained the set without giving notice of rejectionCorrect
  2. BOnly when he signifies approval to the dealer in words
  3. COnly when he pays the full price
  4. DIt never passes unless the dealer sends a written confirmation

Explanation

Under Section 24(b), if the buyer does not signify approval but retains the goods without giving notice of rejection, then where a time has been fixed for return, property passes on the expiration of that time. Here the time fixed was 10 days, so property passed then, not at 15 days.

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